22 Feb 2025

New Zealanders flock to low, no alcohol options

7:56 pm on 22 February 2025
no caption

Photo: AFP

Wellington woman Jessica Hammond-Doube says she often reaches for a non-alcoholic RTD, particularly the zero-alcohol Pals range.

She stopped drinking alcohol for dry July last year and never started again.

She said, although some of her new drink options seemed "outrageously expensive" she justified it as a way of saving money compared to alcoholic options, and of enjoying an alcohol-free life.

"I also appreciate how the packaging of some of them closely resembles alcoholic beverages so I'm less likely to be interrogated about not drinking alcohol."

She said it was boring always drinking water and she wasn't a fan of sweet fizzy drinks. "So having interesting non-alcoholic options helps me to not feel like I'm missing out."

Data shows that she is part of a wider shift to low- and no-alcohol options.

A spokesperson for Woolworths said, over the past 12 months, sales of non-alcoholic spirits sales were up nearly 30 percent.

"We are seeing noticeable change in Kiwi buying, with increasing growth in the zero alcohol and alcohol alternatives category…Overall the biggest trend we're seeing is the shift into non-alcoholic RTDs. Low alcohol beer sales are up slightly and low alcohol wine sales are flat."

A recent Restaurant Association survey showed 21 percent of respondents said the availability of low- and zero-alcohol beverages was a factor in choosing a restaurant.

Research by Curia last October showed 55 percent of people liked drinking low-alcohol beverages, up from 49 percent in 2021.

Southern Cross research showed that 36 percent of respondents said they consumed no alcohol in 2020, this number increased to 38 percent in 2022 and again in 2024 to 41 percent.

Restaurant Association spokesperson Marisa Bidois said it had been a steadily increasing trend in recent years.

"It's a global thing happening at the moment… it's a health-conscious thing in a lot of cases, people are more concerned about their health."

Charlotte Read, general manger of brand for NZ Winemakers said New Zealand had started a seven-year "lighter wines" research programme in 2014.

"The programme resulted in the development of proprietary production and marketing knowledge and the early launch of lighter, mid-strength and no alcohol wines, many of which are doing well in the 'better for you' wine segment in the USA, UK, Australia as well as domestically."

She said 80 percent of people who bought no- or low-alcohol (nolo) wines also bought alcohol products.

"We estimate total domestic sales and export sales are now around 600,000 cases and are on track to exceed one million cases in the near future.

"Successful export brands include Giesen 0.0% (No Alcohol), Kim Crawford Illuminate (Mid-Strength), Brancott Estate Flight (25% Lighter), Stoneleigh Lighter (25% Lighter), Matua Lighter (25% Lighter), and The Doctors' (25% Naturally Lighter)."

Although non-alcoholic products do not attract excise tax, they are often priced similarly to alcoholic options.

Read said the most successful options had typically been line extensions of successful, trusted brands and therefore they were priced in accordance with the rest of the range.

"Nolo wines can be more expensive to make owing to additional techniques required to produce nolo wines that deliver on flavour expectation. Consumers tend to resist paying a premium above full strength wines.

"At the same time, the biggest barrier to purchase can be a consumer perception that nolo wines might be inferior in taste and quality compared to regular wines. Pricing nolo wines lower than full strength wines tends to reinforce this perception of inferiority. To date, line priced or parity priced nolo brands have been very successful. Consumers are primarily driven more by moderation occasion than price."

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Get the RNZ app

for ad-free news and current affairs